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6. Types of traceability systems
Country
Individual
Animal ID
Cattle IDed
At Origin
Ear Tags
Required
All
Movements
Central
Database
Brazil M Y Y Y** Y
Australia M Y Y Y Y*
New Zealand M Y Y Y Y
Canada M Y Y N Y*
EU M Y Y Y Y
Uruguay M Y Y Y Y
Paraguay M Y Y Y** Y
Argentina M Y Y Y** Y
Mexico M Y Y Y Y
7. Reasons exporters adopted
traceability
Country
Year
Introduced
Reason
1. Brazil 2001 Disease Control, Market Access
2. Australia 1999 Market Access
3. U.S. 2017 Market Access
4. New Zealand 2006 Disease Control, Market Access
5. Canada 2001 Disease Control, Market Access
6. EU 1997 Disease Control, Food Safety
7. Uruguay 2006 Disease Control, Market Access
8. Paraguay 2006 Disease Control, Market Access
9. Argentina 2003 Disease Control, Market Access
10. Mexico 2003 Disease Control, Market Access
8. Reasons importers adopted
traceability
Country
Year
Introduced
Reason
1. U.S. Y Market Access
2. China 2006 Food Safety, Disease Control
3. Japan 2003 Food Safety, Disease Control
4. South Korea 2007 Food Safety, Disease Control
5. Russia 2015 Disease Control, Export Goals
6. Hong Kong N/A N/A
7. EU 1997 Disease Control, Food Safety
8. Egypt 2017 Disease Control, Food Safety
9. Canada 2006 Disease Control, Market Access
10. Mexico 2003 Disease Control, Market Access
9. Is the U.S. at a competitive
disadvantage?
• The fact that the U.S. does not have a nationwide
traceability system is not keeping us out of foreign
markets today (we found a solution for China)
• But we are vulnerable to unforeseen developments
that could put us at a severe competitive disadvantage
- FAD outbreak
- Introduction of a traceability requirement by a
leading export market
- Need to respond to consumers’ expectations for
traceable beef
• In addition, competitors use the fact that they have
traceability as a point of differentiation, often as part
of a clean and safe message
11. What could cause the U.S. industry
to adopt traceability?
Mandatory
• Legislative initiative, probably in response to
a FAD outbreak
Voluntary
• Requirement of major import market
• Response to consumer expectations in a
major importing country
• Requirement of major domestic customer
12. Conclusions
• The U.S. is the only major beef exporting country
in the world that does not have traceability
• China is the only significant beef importing
country that currently requires traceability for
imports
• Most countries adopted traceability in response
to (or to avoid) a food safety or animal health
crisis and to respond to consumer concerns about
food safety
• Other exporting countries use the fact that their
beef is traceable as a selling point
• In the event of a FAD outbreak in the U.S. the fact
that we do not have traceability would retard the
process of other countries re-opening their
markets to U.S. beef
Editor's Notes
2017 export value: $7.3 billion (+15%)
2017 exports: 12.9% of 2017 B+BVM production
In the time available this afternoon I want to give you a general sense of what the other major beef trading countries are doing to address traceability.
Top Line Points:
Top 10 beef exporting countries in 2017. (Note: This list does not include India.)
All of these countries have, or are in the process of implementing, cattle ID and traceability systems
In every case, including the U.S. if we include the ADT program, these systems are nationwide in scope
In most cases, the systems are mandatory, with the following exceptions:
* Brazil: Traceability only is mandatory for beef exports to the EU and China
* U.S.: Traceability only is mandatory for beef exports to China. Of course, ADT
also is mandatory, but at its current stage of implementation, it is not a factor
in exports
* Paraguay: Traceability only is mandatory for beef exports to the EU
Top Line Points:
Top 10 beef importing countries in 2017
All of these countries, except Hong Kong, have, or are in the process of implementing, cattle ID and traceability systems
In every case, including the U.S. if we include the ADT program, these systems are nationwide in scope
In most cases, the systems are mandatory, except, as previously noted, traceability in the U.S., other than ADT, only is mandatory for exports to China
China is the only one of the top 10 importing countries that makes traceability a requirement for imports
Top Line Points:
Top 10 beef exporting countries in 2017
In many respects the systems in place or being implemented by these countries are similar.
They all require individual animal ID, require cattle to be IDed before they leave their birth premise, and require the use of some type of ear tag for identification purposes.
Most of the systems require every move the animal makes to be traced. Exceptions are Canada’s bookend system and Brazil, Argentina and Paraguay, which only require that all movements of all EU-eligible cattle be traceable
Every system includes a central database where identification numbers and information on cattle movements is stored
The central databases in Australia and Canada are managed by private entities. The others are managed by the governments.
Note: Mexico’s ID and traceability system is not yet fully implemented. Entries in the table are “aspirational.”
Top Line Points:
Top 10 beef exporting countries in 2017
Most of the top exporting countries have been working on implementing ID and traceability systems for 10-15 years
The EU was the first major beef exporting region to implement mandatory ID and traceability. This was done in response to BSE and the need to restore consumers’ confidence in the safety of beef.
In many cases, countries introduced traceability systems in response to the EU system
In nearly every case, these countries introduced ID and traceability systems to address an animal disease issue and to gain or maintain access to export markets, including especially the EU and Japan
Note: New Zealand disease of concern is bovine tuberculosis
Top Line Points:
Top 10 beef importing countries in 2017
Most of the top importing countries have been working on implementing ID and traceability systems for nearly as long as the exporting countries
But most of these countries, with the exception of the ones that also are significant exporters, introduced ID and traceability systems to address food safety and animal disease issues that were affecting demand in their home markets as opposed to export markets
In many cases, these countries introduced traceability systems in response to the EU system, to meet the new standard established by the EU and increasingly expected/demanded by consumers
Note: Russia’s draft traceability regulation published in 2015. System is not yet fully implemented.
As this quick review of traceability systems in the other major beef trading countries shows, the U.S. is the only country that has not adopted a relatively robust approach to traceability.
Since the U.S. really stands out in this respect, it is natural to ask whether the fact that we have not adopted traceability puts us at a competitive disadvantage in export markets.
Here’s an example of that in a video promoting Uruguay’s traceability system
Uruguay 2017 Stats: Herd - 12.0 million head; beef production = 570,000 mt; and exports = 382,000 mt or 67% or production
Given the beef industry’s experience with BSE and the fact that unlike most other countries that had similar experiences, we did not adopt traceability as part of our response, it’s logical to ask what it would take for the U.S. industry to adopt traceability.
OIE Guideline, Key Concepts: Equivalence; Under the responsibility of the veterinary authority; Legal framework
WTO Requirements: Non-discriminatory; science-based; not trade restrictive
Most compelling arguments for adopting traceability:
animal disease control – minimizing the impact of an outbreak;
herd management and improvement;
product differentiation, added value (capture a premium)